In this episode of PR’s Top Pros Talk, Kevin Whalen, Partner at the Guyer Group, sat down with Doug Simon, CEO of D S Simon Media, to demystify analyst relations and explain why it’s a critical function.

When asked about analyst relations specifically, Whalen was quick to point out a major misconception. “A lot of companies think that it's just about getting in a magic quadrant, or they think that analyst relations is just about having a one-way conversation, telling the analyst how great your company is. They hear that from everybody. That's not really what it's about.” He emphasized that it’s a deeper, more strategic relationship. “When analyst relations is done right, it should improve and impact all aspects of your business. You should be telling analysts about your business challenges and asking for advice and guidance, so they can help you solve those challenges.”

Doug noted that it can be difficult for founders and CEOs to open up about challenges. Whalen pointed to the analysts’ own best practices as a guide. “CEOs and founders are very proud of what they've created and what they're doing. So, they don't want to show the warts and talk about the things that aren't exactly going great, but there's a lot of research that the analysts themselves put out about best practices of engaging with us. Gartner, especially has all kinds of best practices research for comms people to work with Gartner.” He added, “They want to hear your challenges. They want to feel like they're guiding your strategy and see that you're following their advice and you're making these advancements.”

Given the ever-shifting nature of the tech industry, Doug asked how companies should talk about industry trends, especially when those trends are working against them. “When you become a client of one of these bigger firms, like a Gartner or Forrester? That's where you get your access to the analysts,” Whalen said. “You have a back-and-forth dialogue to engage on these issues, work with them in a disciplined, consistent, engaged format of a series of inquiries on various aspects of the trend in the topic.” He emphasized the need to build relationships through multiple engagements.

For start-ups or smaller businesses that don’t have the budget to work with major firms, Whalen offered practical advice. “A seat at the table. For Gartner these days is upwards of $70,000 for one seat. That's a huge ticket that's bigger than some marketing departments at startups.” But all hope is not lost. “There's a whole world of other analysts besides the big three: Gartner, Forrester, and IDC.” He mentioned smaller firms and individual analysts as viable options. “There's even now like a new category of analysts where they're part analysts, part media commentator. They have a column, you know, in certain media outlets, but they also do analyst advisory work.”

He also pointed to Omdia as a strategic opportunity for start-ups. “If you do a briefing with Omdia, you don't have to be a client. You could be a startup. You impress the analysts, they think you're doing something interesting in the market, and they write what they call an on the radar.” These reports, he said, are cost-effective and can serve as strong marketing assets when licensed.

Doug, speaking as a small company founder himself, asked if it’s better to choose one analyst firm or try several. Whalen responded, “We're a believer in crawl, walk, and run. So, you know, we would start with some small firms, maybe some independent analysts, work on your story, on your messaging, and kind of work your way up the value chain.”

Preparation, he noted, is key. “You need to really have a tight deck, and story, and a narrative about what you're telling them. I think you need to bring a degree of realism about where you're at and what your challenges are. again, they don't want just the sunshine.” The most important part of any presentation? “The number one thing that we would recommend you have in any deck right away in the first couple of slides is how are you different?” In crowded spaces like cybersecurity, that’s essential. “There are 3,600 vendors in cybersecurity,” he said, citing industry tracking by analyst Richard Stein. “That's a lot of noise.”

Doug asked whether analysts require full financial transparency. Whalen clarified: “You don't have to open the books, but you need to provide some directionally accurate information so they know where you're at on your in your life cycle.”

As the conversation wrapped up, Whalen left listeners with a powerful reminder. “The one thing I think about with analyst relations is how much it should impact the whole organization. It's not just about appearing in a magic quadrant.” He sees its value as far-reaching. “If you have a good best practice analyst relation program, you should be getting insights that improve your product strategy, your go to market strategy, your partner strategy, your messaging, your positioning, and your differentiation. Every aspect of your business can be improved through effective best practice analyst relations.”

View all of the interviews in the “PR's Top Pros Talk” series. Interested in taking part? Contact Doug Simon at [email protected].

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Suchi Sherpa is a Marketing Communications Specialist at D S Simon Media, a leading firm specializing in satellite media tours.